Income Tax News: Planning your taxes? The deadline to make tax-saving investments and expenditures for the financial year 2023-24 is approaching quickly, falling on March 31st, 2024. This article serves as a friendly reminder to ensure you take advantage of these opportunities before it’s too late.
Important Dates to Consider
- March 31, 2024: This is the official deadline for tax-saving investments and expenditures.
- March 29, 2024: Banks are closed due to a public holiday.
- March 30, 2024: While banks are open on this Saturday, stock markets and mutual fund houses will be closed.
Ensure Timely Investment
To claim tax-saving deductions under sections like 80C and 80D, your investment or expenditure needs to be reflected in the relevant institution’s account by March 31st, 2024.
ELSS Mutual Funds and Investment Dates
For those investing in ELSS mutual funds to claim benefits under Section 80C, ensure the funds reach the mutual fund house by March 31st. This means the date of unit allotment or the NAV date should fall on or before March 31st.
Planning for Cheque Payments
If using a cheque for tax-saving investments, plan accordingly for processing times. A cheque issued on March 22nd might not clear before March 26th or 27th, depending on your bank. Consider alternative payment methods like internet banking or UPI for last-minute investments.
Switching Existing Mutual Funds
Individuals considering switching existing investments to ELSS mutual funds for tax savings should remember the new payout rules for equity schemes (effective February 1, 2023). Switching out of equity schemes takes T+2 working days. To ensure the switch qualifies for tax benefits in the current financial year, the switch-in to ELSS needs to be completed timely.
Prioritize completing your tax-saving investments before March 31st to avoid any last-minute complications. This will ensure you can take full advantage of tax-saving opportunities for the financial year 2023-24.
